Updated at 2:11 p.m., Monday, December 11, 2006
Rise in health insurance premiums outpacing incomes
Advertiser Staff
Health insurance premiums are grabbing an increasingly larger share of workers' paychecks, rising 4.2 times faster than median earnings in the past six years, according to a report from a Washington-based nonprofit group that advocates for affordable healthcare.The report by Families USA said health insurance premium costs for families rose to $9,952 per year from $6,047 between 2000 and 2006, an almost 65 percent increase.
That compared to median income for workers in Hawai'i rising 15 percent.
"Healthcare costs are absorbing an ever-larger portion of family budgets, and it is clear why many Hawaii families feel worse off economically than they did six years ago," said the report.
Workers and employers typically split the costs of coverage, with employers paying most of the premium.
The report showed workers' payments more than doubled over the six year period, rising to $2,727 from $1,311.
Employers' portion of the costs rose to $7,206. They had paid $4,735 earlier.
The report said a growing number of employers are trying to hold down healthcare costs by offering coverage with fewer benefits, higher deductibles and co-payments.
Hawai'i's increase in healthcare premiums compared to median income gains was slightly below the national average. For the country as a whole, the costs went up 6.4 times the increase in median income.
Families USA said the report was based on data from the U.S. Census Bureau, the U.S. Department of Labor and U.S. Department of Health and Human Services.
